Re: Meeting w/Sempra

Roger. Mums the word on the gov.

Steven J Kean
10/11/2000 03:03 PM

To: Jeff Dasovich/NA/Enron@Enron
cc:
Subject: Re: Meeting w/Sempra

sounds good. I think we should not talk about the conversations with the
governor . . . I'd rather not prompt them to go to the gov (presumably to
object to the gov talking to us without talking to them at the same time).

Jeff Dasovich
Sent by: Jeff Dasovich
10/11/2000 02:54 PM

To: Richard Shapiro/NA/Enron@Enron, skean@enron.com, Sandra
McCubbin/SFO/EES@EES, Paul Kaufman/PDX/ECT@ECT, James D
Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Susan J
Mara/SFO/EES@EES, Mona L Petrochko/SFO/EES@EES, mpalmer@enron.com, Karen
Denne/Corp/Enron@ENRON
cc:
Subject: Meeting w/Sempra

FYI. Recently, Chris Calger has asked me to set up a meeting with Sempra.
ENA's seeking deals with the two big CA gas IOUs (PG&E and SoCalGas) that
would give ENA access to their assets. In short, ENA wants to offer a
complete outsource deal for the IOUs' core gas load (i.e., rez and small
commercial customers). ENA would take responsibility for providing service
for delivery at the city gate and in return would manage all of core's assets
(upstream of the city gate). We're meeting with Sempra's "Chief Regulatory
Office" (Bill Reed) and Sempra's CFO next Thursday to discuss.

Given the fact that Sempra's primarily focused on electricity, the plan is to
lead off the meeting with a couple of electricity solutions as a bridge to
the gas offer. For electricity, the plan has two pieces: 1) a commodity
offer that beats the 6.5 cent cap (i.e., nothing fancy) and 2) "Deal Bench"
services with the intent of establishing a procurement mechanism for SDG&E
that the California PUC could pre-approve (thereby eliminating some of the
immense regulatory risk SDG&E now faces).

Wanted to run this by folks to gauge reactions. We'll distribute the slides
we're putting together as soon as they're drafted--hopefully by COB Friday.

Best,
Jeff